Union games: technological unemployment

B-Tier
Journal: Economic Theory
Year: 2006
Volume: 27
Issue: 2
Pages: 359-373

Score contribution per author:

1.005 = (α=2.01 / 2 authors) × 1.0x B-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

Given a production economy, we define union games by considering strategic behavior of the suppliers of factors. We refer to the Nash equilibria of this game as union equilibria. We analyze situations where the unemployment of factors is supported as a union equilibrium. The degree of unemployment depends on technological conditions. This allows us to model a source of unemployment which differs from the usual sources provided in the literature. We state a limit result that demonstrates that, as the market power of unions decreases, the corresponding sequence of union equilibria converges to the Walrasian equilibrium, that is, to full employment of factors. We also provide some examples that illustrate the main results. Copyright Springer-Verlag Berlin/Heidelberg 2006

Technical Details

RePEc Handle
repec:spr:joecth:v:27:y:2006:i:2:p:359-373
Journal Field
Theory
Author Count
2
Added to Database
2026-01-25